Clean and Sustainable Energy Technology: EPA Programs and New Initiatives

1. Clean and Sustainable Energy Technology:EPA Programs and New Initiatives Clean and Sustainable Energy Conference Atlanta, GA December 11-12, 2007 Julie Rosenberg, U.S. EPA State & Local Clean Energy-Environment Programs Climate Protection Partnership Division

2. Important Time for Clean Energy • Convergence of environmental - resource - economic issues • Clean energy offers cost-effective solutions • Energy efficiency, renewable energy, combined heat and power • EPA efforts to overcome barriers and help clean energy compete • ENERGY STAR • National Action Plan for Energy Efficiency • Clean Energy-Environment State Program • Green Power Partnership • Combined Heat and Power Partnership • Climate Leaders • Climate Technology Initiative

3. Broad Benefits of Clean Energy • Environmental • Lower greenhouse gas emissions and criteria pollutants • Lower water use • Utility System • Quick fix with longer term benefits • Improve security of electricity and gas systems • Lower peak demand / improve reliability • Diversify utility supply portfolio • Reduce environmental regulatory risk to utilities • Economic • Lower cost compared to new generation and transmission • Downward pressure on natural gas prices • Lower wholesale electricity prices • Improved local economy • Improved service to low income and seniors

4. Future Electricity Demand Scenarios 5,500 BAU 5,000 50% of Growth 4,500 Consumption (Billion kWh) 4,000 Range of Studies 3,500 2004 2008 2012 2016 2020 2024 Energy Efficiency is… • Large Resource More than 50 percent of gas and electric growth can be offset cost-effectively • Low cost now Fraction of new generation • Stays low cost – what ever the future price of carbon

5. Barriers to Clean Energy • Information • Technology Options • Costs and Benefits • Technical Assistance • Transaction Costs • Split Incentives • Objective Measurement Tools • Contradictory Policies and Regulations

6. EPA Programs Designed to Overcome the Barriers • Information • Technology Options • Costs and Benefits • Technical Assistance • Transaction Costs • Split Incentives • Objective Measurement Tools • Contradictory Policies and Regulations

7. Strategic Role of EPA’s Clean Energy Programs Helping Markets Work • Break down barriers • Capture cost-effective GHG reductions • Lock in reductions now where there is a net benefit • Provide near-term solutions while others invest in long-term R&D programs • Establish an environment for investment • Complement other policies • ie: codes and standards

8. Broad national, credible platform for EE Residential – 50+ products Commercial - existing and new buildings Cost-effective platform for investors and policy makers Helps lower program administration costs Reduces start-up time Provides valuable lessons learned Provides access to a network of partners Partners with key market actors – 9,000+ partners Major manufacturers and retailers Builders Utilities / system benefits charge administrators 60% of utility customers 40+ States National recognition - >65% of public ENERGY STAR Platform for the new Climate Technology Initiative

9. ENERGY STAR is Guiding Building Investments Across the Country • Commercial/Public Buildings being rated for upgrade potential • 6 billion square feet rated (30,000+ buildings) • 10,000+ schools • 3,200 - ENERGY STAR top performers • Also addresses water use • ENERGY STAR Challenge • 30+ states / DC • improve building efficiency >10% • ENERGY STAR new homes • ~200,000 in 2006 – 1 in 10 • NEW: Home Performance with ENERGY STAR • improvements to existing homes

10. ENERGY STAR Industrial Program • Grown to include 10 industrial sectors • Offers: • Plant-level performance metrics; • Peer exchange; and • Sector-specific barriers and opportunities. • Manufacturing plants now qualifying for the ENERGY STAR Industry relationships provide foundation for the Climate Technology Initiative

11. Clean Energy Supply Programs Green Power Partnership • Supports companies and organizations that purchase green power voluntarily. • Provides technical and marketing assistance. • > 800 Partners purchasing more than 10 billion kWh. • Green Power Fortune 500 Challenge – goal is to double the green power purchases of Fortune 500 corporations from 2.5 billion kilowatt-hours (kWh) annually to at least 5 billion KWh each year. • In final stretch and closing in on KWh goal. Combined Heat and Power Partnership • Provides state governments, major energy users, the CHP industry and other clean energy stakeholders assistance in promising markets and sectors. • > 230 Partners deploying > 3,500 MW of new CHP since 2002. • Focused in: • Regions with high electricity prices such as CA and New England, • Conducive market sectors: ethanol refineries, municipalities, wastewater treatment, hotels/casinos, and datacenters • Using woody biomass as a clean, renewable and cost-effective fuel for CHP. Advanced technologies inform emerging technologies

12. Climate Leaders • Leveraging momentum in the business community for aggressive climate change actions • 153 companies representing 9 percent of total U.S. GHG emissions • 80 partners have announced aggressive GHG reduction goals • 11 partners have achieved goals since 2002

13. National Action Plan for Energy Efficiency Goal: Create a sustainable, aggressive national commitment to energy efficiency through gas and electric utilities, utility regulators, and partner organizations. • 5 key recommendations from 50-member Leadership Group in 7/06 • Recognize energy efficiency as a high-priority energy resource; • Make a strong, long-term commitment to implement cost-effective energy efficiency as a resource; • Broadly communicate the benefits of and opportunities for energy efficiency; • Provide sufficient, timely and stable program funding to deliver energy efficiency where cost-effective; and • Modify policies to align utility incentives with the delivery of cost-effective energy efficiency and modify ratemaking practices to promote energy efficiency investments. • Vision for 2025 includes implementing: • State of the Art Efficiency Information Sharing and Delivery Systems • Advanced Technologies Utilities and PUCs counting on new technologies

14. Clean Energy-Environment State Program Works directly with states and locals to implement clean energy polices and programs that generate multiple benefits: GHG/environment, energy and economic. • Program Offerings: • Best Practice Guidance • Tools and Analyses • Peer Exchanges • Technical Assistance • Formal Partnership for States States can fund emerging technologies

15. NEW EPA Climate Technology Initiative - Emerging Technologies ENERGY STAR • mass market consumer • cost-effective (2 to 3 year • payback) • proven technology • no sacrifice in performance • reliable savings – easy design, installation, and maintenance New Climate Technology Initiative • New recognition program • Partnering with ‘champions’ to complement EPA competencies Builds upon EPA’s clean energy market and program expertise

16. NEW EPA Climate Technology Initiative • Stakeholder Conference • Climate Technology Initiative Conference - October 2007 • 75 experts • Key findings drive EPA’s direction as we develop the new imitative: • Climate change has created a market for new technology; • EPA Can and Should Play a Fundamental Role; • Speed commercialization of environmentally superior technology; • Protect the ENERGY STAR brand; • Develop unique recognition programs; • Promote emerging technology at every stage of development; • Concentrate on technologies within EPA’s core competencies; • Leverage partners who complement and supplement core competencies; and • Define new product carbon performance standards. • Next Steps • EPA assessing options for technology pilots – winter/spring ‘08

17. Julie Rosenberg rosenberg.julie@epa.gov (202) 343-9154 http://www.epa.gov/cleanenergy/